The Effect of Financing Constraints on OFDI of China's Enterprise
Abstract
This paper constructs an OFDI model of heterogeneous enterprises with financing constraints and put forward the hypothesis of financing constraints and outward FDI. Based on the panel data of China's industry enterprises from 2005 to 2014, this paper establishes a panel data model and estimates the hypothesis. The main conclusions are as follows: the larger the financing constraint, the less FDI; Compared with domestic financing constraints, OFDI enterprises are more constrained by external financing constraints; In the process of OFDI the state-owned enterprises are less constrained than the private ones, and the private ones are heavily affected by the financing constraints. Among them, the influence of exogenous financing constraints is the biggest.
Keywords
Financing constraints, OFDI, heterogeneous enterprises.
DOI
10.12783/dtssehs/adess2017/17842
10.12783/dtssehs/adess2017/17842